Balchem Stock Valuation

BCPC
 Stock
  

USD 134.17  4.69  3.62%   

Do you wonder what the value of Balchem Cp is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Balchem Cp, is its stock price multiplied by the total number of shares outstanding, calculating Balchem Cp's enterprise value requires a different approach. It uses Balchem Cp's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
As of August 13, 2022, Free Cash Flow is expected to decline to about 110.2 M. In addition to that, Enterprise Value is expected to decline to about 4.4 B.
Balchem Cp shows a prevailing Real Value of $159.93 per share. The current price of the firm is $134.17. At this time, the firm appears to be undervalued. Our model approximates the value of Balchem Cp from analyzing the firm fundamentals such as Return On Equity of 12.27 %, current valuation of 4.49 B, and Profit Margin of 12.40 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor taking in undervalued instruments and trading overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Balchem Cp Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Balchem Cp's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Balchem Most Recent Valuation Data

Price Book
4.58
Enterprise Value
4.5 B
Enterprise Value Ebitda
23.29
Price Sales
4.81
Forward PE
38.91
Trailing PE
39.26
Enterprise Value Revenue
5.13
Undervalued
Today 134.17
Please note that Balchem Cp's price fluctuation is very steady at this time. Calculation of the real value of Balchem Cp is based on 3 months time horizon. Increasing Balchem Cp's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Balchem Cp is useful when determining the fair value of the Balchem stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Balchem Cp. Since Balchem Cp is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Balchem Stock. However, Balchem Cp's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
120.75
Downside
159.93
Real Value
161.75
Upside
Estimating the potential upside or downside of Balchem Cp helps investors to forecast how Balchem stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Balchem Cp more accurately as focusing exclusively on Balchem Cp's fundamentals will not take into account other important factors:
Earnings
Estimates (1)
LowProjected EPSHigh
2.932.932.93
Details
Hype
Prediction
LowEstimated ValueHigh
131.72133.54135.36
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.400.410.41
Details
2 Analysts
Consensus
LowTarget PriceHigh
170.00172.50175.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Balchem Cp's intrinsic value based on its ongoing forecasts of Balchem Cp's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Balchem Cp's closest peers. When choosing an evaluation method for Balchem Cp, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Balchem Valuation Drivers Correlation

Many accounts on the financial statements of Balchem Cp are highly interrelated and sometimes correlated. Consequently, when conducting Balchem's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Balchem
Click cells to compare fundamentals

Balchem Valuation Trend

Knowing Balchem Cp's actual value is paramount for traders to make sound investment determinations. Balchem Cp's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Balchem Cp's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Balchem Cp's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Balchem Market Cap

Balchem Cp is number one stock in market capitalization category among related companies. Market capitalization of Specialty Chemicals industry is currently estimated at about 4.3 Billion. Balchem Cp totals roughly 4.16 Billion in market capitalization claiming about 97% of equities listed under Specialty Chemicals industry.
Capitalization  Valuation  Total debt  Revenue  Workforce

Balchem Cp Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Balchem Cp's current stock value. Our valuation model uses many indicators to compare Balchem Cp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Balchem Cp competition to find correlations between indicators driving Balchem Cp's intrinsic value. More Info.
Balchem Cp is number one stock in price to earning category among related companies. It is number one stock in beta category among related companies totaling about  0.02  of Beta per Price to Earning. The ratio of Price to Earning to Beta for Balchem Cp is roughly  65.71 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Balchem Cp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Balchem Cp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Balchem Cp's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Balchem Cp's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Balchem Cp and how it compares across the competition.

About Balchem Cp Valuation

The equity valuation mechanism determines the current worth of Balchem Cp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Balchem Cp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Balchem Cp based exclusively on its fundamental and basic technical indicators. By analyzing Balchem Cp's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Balchem Cp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Balchem Cp. We calculate exposure to Balchem Cp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Balchem Cp's related companies.
Fiscal Year End
December
Industry
Specialty Chemicals
Concentration
Specialty Chemicals
Full Time Employees
1.4 K
Service Category
Chemicals
Employer Id Number
13-2578432
Last ReportedProjected for 2022
Gross Profit243.2 M224.7 M
Profit Margin 0.11  0.11 
Balchem Corporation develops, manufactures, and markets specialty performance ingredients and products for the nutritional, food, pharmaceutical, animal health, medical device sterilization, plant nutrition, and industrial markets in the United States and internationally. Balchem Corporation was incorporated in 1967 and is headquartered in New Hampton, New York. Balchem Cp operates under Specialty Chemicals classification in the United States and is traded on NASDAQ Exchange. It employs 1359 people.

Balchem Cp Quarterly Enterprise Value

4.24 Billion

Balchem Cp's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Balchem Cp's value is low or high relative to the company's performance and growth projections. Determining the market value of Balchem Cp can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Balchem Cp represents a small ownership stake in the entity. As a stockholder of Balchem, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Balchem Cp Dividends Analysis For Valuation

Please note that Balchem Cp has scaled down on payment of dividends at this time. As of August 13, 2022, Accumulated Retained Earnings Deficit is expected to decline to about 629.9 M. In addition to that, Earning Before Interest and Taxes EBIT is expected to decline to about 119.4 M
There are various types of dividends Balchem Cp can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Balchem shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Balchem Cp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Balchem pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Balchem Cp by the value of the dividends paid out.

Balchem Cp Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Balchem Cp does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio1.50
Earnings Quarterly Growth31.00%
Revenue Growth17.00%
Payout Ratio19.16%
Enterprise Value To Ebitda23.28
Earnings Growth31.40%
Enterprise Value To Revenue5.13

Balchem Cp Current Valuation Indicators

Valuation refers to the process of determining the present value of Balchem Cp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Balchem we look at many different elements of the entity such as Balchem's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Balchem Cp's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Balchem Cp's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Balchem Cp, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Balchem Cp's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Balchem Cp's worth.
Continue to Trending Equities. Note that the Balchem Cp information on this page should be used as a complementary analysis to other Balchem Cp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

Complementary Tools for Balchem Stock analysis

When running Balchem Cp price analysis, check to measure Balchem Cp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Balchem Cp is operating at the current time. Most of Balchem Cp's value examination focuses on studying past and present price action to predict the probability of Balchem Cp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Balchem Cp's price. Additionally, you may evaluate how the addition of Balchem Cp to your portfolios can decrease your overall portfolio volatility.
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Is Balchem Cp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Balchem Cp. If investors know Balchem will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Balchem Cp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.31
Market Capitalization
4.2 B
Quarterly Revenue Growth YOY
0.17
Return On Assets
0.0652
Return On Equity
0.12
The market value of Balchem Cp is measured differently than its book value, which is the value of Balchem that is recorded on the company's balance sheet. Investors also form their own opinion of Balchem Cp's value that differs from its market value or its book value, called intrinsic value, which is Balchem Cp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Balchem Cp's market value can be influenced by many factors that don't directly affect Balchem Cp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Balchem Cp's value and its price as these two are different measures arrived at by different means. Investors typically determine Balchem Cp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Balchem Cp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.